I’m hearing that Roan Resources is sending out letters about pooling in 13-8N-6W. I haven’t received anything on this. Anybody received anything?
Horizontal and location exception have been sent out, but I do not see a pooling as of today. They were 2018001676 and 1677. Check the respondents list and make sure your address is correct.
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Yes I have those. I was working on a lease and I was pushing for them to strike their “however, any such costs which result in enhancing the value of the marketable oil, gas…” clause and they took a hard line and said no. Then I heard through another source that they were sending out pooling letters this past week with terms less favorable than I was asking. The section already has the well Mine That Bird that spudded back in March 2018. Any suggestions for me to counter offer with them before I cave in to them?
If they won’t budge at all, here is a an alternate wording that ties it to a particular court case. It will protect you more.
“LIMITED DEDUCTIONS: Notwithstanding any language contained herein to the contrary, all oil, gas or other proceeds accruing to the Lessor under this lease or by state law shall be without deduction, for the costs of producing, gathering, storing, separating, blending, treating, dehydrating, compressing, manufacturing, processing, transporting, and marketing the oil, gas and/or other products produced under or otherwise covered by this lease to transform such oil, gas or other product into marketable form or to make such oil, gas or other product ready for other use; however, Lessor’s share of any such costs which result in enhancing the value of such marketable oil, gas or other products to receive a better price may be deducted from Lessor’s share of production so long as they are based on Lessee’s actual cost of such enhancements and are otherwise in compliance with the guidelines established in Mittalstaedt v. Santa Fe Minerals, Inc., 1998 OK 7, 954 P2d 1203. If deductions are taken for any post-production costs as described above, Lessee, upon Lessor’s written request, shall provide the Lessor a detailed analysis of each such cost and how and in what amount each such cost enhanced the value of such oil, gas or other products.”
I am not giving legal advice…